The Dinar Is Recovering. The Dollar’s Value In Iraq Has Fallen Due To Local Measures.
Information/Report…Over the past few days, Iraqi markets have witnessed a significant decline in the dollar exchange rate against the dinar, following months of fluctuations and price increases that sparked public concerns and market turmoil.
Exchange offices and the local stock exchange in most Iraqi governorates recorded a decline in the dollar exchange rate against the Iraqi dinar on Tuesday, part of a slight and gradual decline that has been ongoing for days.
In the final hours of the closing hours, the exchange rate for $100 reached 143,000 dinars, a difference of 11,000 dinars from the official exchange rate adopted by the Central Bank of Iraq, which is 1,320 dinars to the dollar.
The sudden decline has raised questions about its true causes and whether it represents the beginning of monetary stability or merely a temporary decline.
Experts believe the reasons are primarily local, not the result of regional or global developments.
In this context, economic expert Abdul Rahman Al-Mashhadani told Al-Maalouma,
“Geopolitical conditions, such as tensions between India and Pakistan, typically increase demand for the dollar,
but what happened in Iraq clearly indicates that internal factors are the primary driver of the price decline.”
Al-Mashhadani explained that one of the most prominent of these factors was the
Central Bank‘s previous decision to regulate the sale and purchase of real estate,
which reduced the use of the dollar in real estate transactions, thus easing pressure on foreign currency.
He also pointed out that the expansion of banks authorized to process foreign transfers and
the adoption of a balance-enhancing mechanism led to significant dollar sales exceeding $300 million per day in previous periods.
However, much of this money was not used to import goods, but rather remained in external accounts, known as “return,” which does not reflect real demand within the market.
Al-Mashhadani pointed out that the new Central Bank administration has adopted a more open policy to
regulate the market and
tightened controls on transfers and currency smuggling, which has contributed to
strengthening confidence and
raising the level of foreign exchange reserves.
Despite this improvement, observers caution against considering the dollar’s decline as an indicator of permanent stability, especially given the ongoing political and economic challenges and the market’s reliance on imports.
Any decline in oil revenues or foreign currency inflows is a source of concern.
Experts emphasize that sustaining the dollar’s decline requires
continuing economic and monetary reforms,
strengthening the role of the banking sector,
regulating the parallel market, and
supporting local production to reduce reliance on the dollar. End / 25s
https://almaalomah.me/news/98057/economy/الدينار-يستعيد-عافيته-تراجع-سعر-الدولار-في-العراق-بفعل-إجراء
The Dollar Continues To Fall In Iraq. Is The Market Approaching The Official Rate?
Today’s Economy , 15:20 | 2691 Baghdad Today – Baghdad Financial and economic expert Alaa Al-Fahd predicted on Wednesday (May 7, 2025) that the dollar exchange rate will continue to decline in the Iraqi market over the coming period, noting that
the gap between the official price and the parallel market price is close to disappearing. Al-Fahd told Baghdad Today,
“The Central Bank of Iraq has taken a series of measures in cooperation with banks, most notably direct financing of commercial transactions,
which has contributed to narrowing the gap between the official rate and the parallel market rate.”
He added, “The Central Bank’s continued coverage of foreign trade and regular dollar sales to banks
will push the parallel market exchange rate further downward, and we may soon see it reach the official rate.”
The local market has witnessed fluctuations in the dollar exchange rate against the dinar over the past few months,
with the parallel market rate rising significantly compared to the official rate approved by the Central Bank of Iraq, which is 1,320 dinars per dollar.
The reasons for this discrepancy are
restrictions on foreign transfers,
declining confidence in some banking channels, and
external influences related to sanctions policies and controls on dollar movement.
With the Central Bank’s recent measures, expectations indicate a
gradual return to stability and a
narrowing of the gap between the two rates. https://baghdadtoday.news/273715-.htm
Chestertons Global Enters Iraq With Baghdad Office
Business Iraq IraqiNews May 2, 2025 1364 Baghdad (IraqiNews.com) – In line with its strategic expansion across the Middle East, UK’s Chestertons Global has announced the opening of a new office in Baghdad, Iraq.
This marks a significant milestone as the international property brokerage continues to strengthen its presence in the Middle East.
The Baghdad office will offer a full suite of property services, including
residential and commercial sales and rentals,
investment advisory,
valuations, and
market research.
Chestertons Global’s entry into Iraq is a timely move, as
the country’s real estate sector continues its rapid development.
Valued at $1.12 billion in 2024,
Iraq’s property market
ranks among the largest in the Arab world and
is expected to grow at an annual rate of 6%.
With over 100 offices across 21 countries, the addition of Iraq strengthens Chestertons Global’s international network
and significantly enhances its capacity to serve clients in one of the region’s most promising markets.
https://www.iraqinews.com/iraq/chestertons-global-enters-iraq-with-baghdad-office/
Iraq Increases Condensate Output
Iraq Amr Salem May 7, 2025 158 An employee turns a valve at the Nahr Bin Omar natural gas field, north of the southern Iraqi port of Basra. Photo: AFP
Baghdad (IraqiNews.com) – The Iraqi Minister of Oil, Hayan Abdul-Ghani, said in a statement on Wednesday that
natural gas output and flared gas utilization projects have increased in Iraq.
A statement released by the Iraqi Oil Ministry mentioned that the country’s efforts to lessen gas flaring and satisfy local demand have resulted in the availability of substantial amounts of condensates, reaching about 160,000 barrels per day, according to Reuters.
Condensate, a light oil, is mostly used as a mixture for heavy crude or processed in separators to produce naphtha, a petrochemical product.
To improve its characteristics, the majority of the condensates generated are mixed with crude oil.
Iraq’s attempts to maximize its energy resources and lessen its environmental effect through improved utilization of flared gas have taken a significant stride with the growth in condensate output.
As part of the government’s plan to quickly become self-sufficient in gas and energy, Iraq plans to increase the utilization of flared gas wasted in oil operations to 70 percent by the end of 2025.
Abdul-Ghani told the state-run news agency (INA) last month that promising projects are underway to
maximize the production and utilization of flared gas in oil fields throughout the country.
According to the oil minister, flared gas utilization in Iraq is predicted to rise from its present level of around 67 percent to 70 percent by the end of 2025.
As part of the government agenda, gas flaring is scheduled to completely stop in Iraq by 2028, with efforts being made to turn this wasted energy into useful energy. https://www.iraqinews.com/iraq/iraq-increases-condensate-output/
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